CSSE 372 Software Project

Management:

Earned Value Analysis

(EVA) Exercises
Shawn Bohner
Office: Moench Room F212
Phone: (812) 877-8685
Email: bohner@rose-hulman.edu

Learning Outcomes: Plan

(verb)

Create a plan for an intermediate size software

project and manage to the plan. Maintain a
software project schedule.
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Do some Earned Value

Analysis
Examine Estimated to
Complete Values
Determine good and bad
Trends in the progress

You have the WBS and have identified

the activities. Where do you start with
Earned Value Analysis?
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Think for 15.11 seconds

Turn to a neighbor and
discuss it for a minute
Then can we tawlk?

Earned Value Exercise (PV, AC, EV)

Task Develop and install ten printer drivers.
Budget - $100,000 ($10K per printer driver)
Time 10 weeks (1 printer driver per week)
At week 5:
4 printer drivers developed and installed
$47,500 spent to date
PV = $???
AC = $???
EV = $???
Q1, 2, 3

Derived EVA Metrics: CV and SV

CV = EVAC

Cost Variance
n

Comparison of the
budgeted cost of work
performed with actual
cost
Negative CV means the
project is over budget

SV = EVPV

Schedule Variance
n

Comparison of work
performed during a period
of time to what was
scheduled to be performed
Negative SV means the
project is behind schedule
Q4

Earned Value Exercise (CV)

Cost Variance (CV)

CV = EV - AC
= $???
Good News: If CV value is positive, the project is
currently under budget (spending less than
planned for the work)
Bad News: If CV value is negative, the project is
currently over budget (spending more than
planned for the work)

Earned Value Exercise (CPI)

Cost Performance Index (CPI)

CPI = EV / AC
= ???
Good News: If CPI value is >1 or =1, the project
cost trend is currently under or at planned budget
Bad News: If CPI value <1, the project cost trend
is currently over budget
Q5

Earned Value Exercise (CV%)

Cost Variance % (CV%)

CV% = CV / EV
= ???%
Good News: If CV% value is positive, the project
is currently under budget by the CV%
Bad News: If CV% value is negative, the project is
currently over budget by the CV%

Awkward!!!

Earned Value Exercise (SV)

Schedule Variance (SV)

SV = EV - PV
= ???
Good News: If SV value is positive, the project is
currently ahead of schedule
Bad News: If SV value is negative, the project is
currently behind schedule

Earned Value Exercise (SPI)

Schedule Performance Index (SPI)

SPI = EV / PV
= ???
Good News: If SPI value is >1 or =1, the project
schedule trend is currently ahead or on planned
schedule
Bad News: If SPI value <1, the project schedule
trend is currently behind schedule
Q6

Earned Value Exercise (SV%)

Schedule Variance % (SV%)

SV% = SV / PV
= ???%
Good News: If SV value is positive, the project is
currently ahead of schedule
Bad News: If SV value is negative, the project is
currently behind schedule

Q7

Earned Value Exercise

Task Develop and install ten printer drivers.
Budget - $100,000 ($10K per printer driver)
Time 10 weeks (1 printer driver per week)
At week 5:
4 printer drivers developed and installed
$47,500 spent to date
PV = $50,000

CV = -$7,500

SV = -$10,000

AC = $47,500

CPI = 0.84

SPI = 0.80

EV = $40,000

CV% = -19%

SV% = -20%

But, when will we complete?

Estimate at Completion
(EAC)
Actual costs to date plus a new estimate for all
remaining work (original plan no longer valid)

EAC = AC + ETC
(ETC Estimate to Complete)

Q8

Well, its a little involved

Estimate at Completion
(EAC)
Actual costs to date plus remaining budget (current
variances viewed as atypical of future variances)
Actual costs to date plus remaining budget modified
by a performance factor (CPI) (current variances are
viewed as typical of future variances)

EAC = AC + [(BAC - EV) / CPI]

~EAC = BAC / CPI
Q8

Earned Value Performance Indices

Good Progress

Project: Alpha
1.6
1.4
1.2
1.0
0.8

S
S
C

S
C

C
S

S
C

S
C

S
C

S
C

Under budget
Ahead of schedule

Over budget
Behind schedule

0.6
0.4

Project Week

Earned Value Performance Indices

Divergent Progress

Project: Beta
1.6
1.4
1.2
1.0
0.8

C
S

C
S

0.6

Under budget
Ahead of schedule

Over budget
Behind schedule

0.4
1

Project Week

Earned Value Performance Indices

Losing Ground

Project: Charlie
1.6
1.4
1.2
1.0
0.8

S
C

S
C

C
S

S
C

Under budget
Ahead of schedule

C
S

0.6

C
S

Over budget
Behind schedule

C
S

0.4
1

Project Week
Q9

Recall: PV, EV and AC Curves

Cost and Schedule Variance

Another View of
Cost and Schedule Variance

Schedule
Variance

Progress

PV
AC
EV
Time

Cost Variance

Homework and Reading Reminders

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Read ahead with Chapter 9 of text for Monday

Complete Homework 5 Software Schedule
Due

by 11:55pm, Tuesday, October 9th, 2012

Final Project SW Proj. Mgt. Plan (SPMP)

Completed

by team
Due by 11:55pm, Friday, November 2nd, 2012.
No late days review swap with another team
Complete Homework 6 Earned Value Analysis
Due by 11:55pm, Tuesday, October 16th, 2012
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Have a great Fall break!